There has been a lot of publicity recently regarding HMRC's tax investigation campaigns and the effect that this is having on the moral of small business owners. Apart from their contentious Business Record Check campaign, when HMRC investigators descend on a business to check their books and records, what else is the tax office up to? 

 

"HMRC campaigns are broadly based on similar principles involving three main stages:

 

1.    HMRC identify taxpayers from a specific group who may have outstanding tax liabilities.

2.    Stage 2 - HMRC offer a limited time disclosure facility with reduced penalties offering taxpayers the opportunity to bring their tax affairs up to date.

3.    Stage 3 - HMRC may formally investigate taxpayers that did not come forward under the disclosure facility or who HMRC believe have made an incomplete disclosure.

 

Current and future campaigns being considered by HMRC include:

 

Electrician's Tax Safe Plan (ETSP) 

Electricians are to be targeted for tax evasion from February 2012. The launch of the ETSP will build on the success of the 'Plumbers Tax Safe Plan' (PTSP) and provide an opportunity to another group of trades people to come forward and declare unpaid tax and regularise their tax affairs. 

 

E-marketplaces

This disclosure opportunity will cover individuals and businesses that are using e-marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed. Individuals who only sell a few items and who are not traders are unlikely to be liable to tax and will not be targeted by this campaign. The campaign is expected to begin in spring in 2012. 

 

Liechtenstein Disclosure Facility (LDF)

This agreement is designed to target UK taxpayers with investments in Liechtenstein which have not been taxed to make a full disclosure to HMRC. This agreement known as the Liechtenstein Disclosure Facility (LDF) will allow penalties on unpaid tax to be capped at 10% of tax evaded over the last ten years. The LDF commenced on 1 September 2009 and will run until 31 March 2015. Both HMRC and the Liechtenstein authorities expect that by the end of the LDF all UK taxpayers with Liechtenstein investments will be fully tax compliant."  

 

Charlton Baker Ltd are happy to talk to any small business owner or taxpayer who would like more information on this topic.

 

Notes to editors

1.    For more information contact Scott Sartin of Charlton Baker Ltd: Direct Line 01672 563 061, Email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

2.    These comments are offered for publication on the understanding that our contact information is included.

3.    The writer would appreciate details of the publication date if this article is released for publication.